Banks  [ PDF ] Indonesian theme reignited NEUTRAL - Maintained - by Winson NG, CFA

The Indonesian regulator’s decision against a shareholding cap for its banks is not a total surprise and is good news for selected Malaysian banks. Maybank will not have to cut its stake in BII while RHB and Affin can proceed with their investments in Indonesian banks. Contributions from Indonesia for the banks we cover are still small at about 2% of earnings. While this news lifts the shareholding fears, we are still worried about the impact of an economic slowdown this year. We remain Neutral, with Maybank staying as our top pick.